Does Coin Magi depend on Bitcoin? According to the correlation analysis, BTC and XMG have a very strong positive relationship. The correlation coefficient of their values is 0.92, which was measured based on the previous 100-days' price movements of both cryptocurrencies.
This coefficient may vary from -1 to 1, where -1 is the strongest negative correlation, 0 is no correlation at all and 1 is the strongest positive correlation.
The negative coefficient indicates that the prices of the coins are going in the opposite trend while the positive coefficient points that the prices are moving in the same trend. For example, if Bitcoin and Coin Magi connection is positively strong, it means that when BTC is growing XMG will rise as well. The negative strong relation will tell that when BTC is growing XMG value will be in contrary decreasing.
The knowledge of the correlation coefficient helps to compute in percentage the influence of Bitcoin over Coin Magi. If we take all the circumstances affecting the price of XMG as 100%, then the share of BTC price among these factors will be 84.64%. The other part which is 15.36% covers all the other factors, such as media, events or politics.